FOREX-Dollar edges higher on strong data, despite lower yields

Published 16/04/2021, 12:08 am
© Reuters.
EUR/USD
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USD/CHF
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DX
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US10YT=X
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COIN
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (Adds quotes, updates prices; changes dateline, previous LONDON)

By Karen Brettell

NEW YORK, April 15 (Reuters) - The dollar index edged higher on Thursday in choppy trading as investors balanced bullish data showing U.S. retail sales rebounded sharply in March against a continued drop in U.S. Treasury yields.

Retail sales increased 9.8% last month, the Commerce Department said on Thursday, beating economists' expectations for a 5.9% increase.

A separate report also showed that initial claims for state unemployment benefits totaled a seasonally adjusted 576,000 for the week ended April 10, compared with 769,000 in the prior week. Economists polled by Reuters had forecast 700,000 applications in the latest week. was a one-two punch of really positive data,” said Edward Moya, senior market analyst at OANDA in New York.

Dollar strength was capped, however, as Treasury yields US10YT=RR dropped to one-month lows, reducing the relative attractiveness of the U.S. currency. US/

The dollar index =USD earlier on Thursday hit a one-month low of 91.487, before rebounding to 91.633, up 0.03% on the day.

The euro EUR=EBS fell 0.07% to $1.1971. The greenback fell 0.15% to 109.73 Japanese yen JPY=D3 .

The dollar has been on the back foot this month as Treasury yields stabilize below one-year highs reached last month. Yields have fallen as the U.S. Federal Reserve reiterates its commitment to holding rates near zero for years to come, and on some concerns that a recent uptick in inflation will be temporary.

Strong risk appetite as stocks hit record highs is also seen as denting the appeal of the greenback. .N

The Australian dollar AUD=D3 , a proxy for global risk sentiment, rose 0.36% on Thursday to $0.7749.

Rising geopolitical tensions may be helping demand for safe-haven U.S. bonds on Thursday.

“We're seeing more risks across emerging markets right now, and that's probably going to keep some Treasury demand going,” said Moya.

The Russian rouble tumbled on Thursday, at one point losing 2% to the dollar in volatile trade and hitting a more than five-month low versus the euro as the White House announced new sanctions targeting Russia's sovereign debt. President Joe Biden on Thursday authorized the move to punish Moscow for interfering in the 2020 U.S. election - allegations Russia denies. BTC=BTSP stood near a record high of $64,895 reached on Wednesday, when cryptocurrency platform Coinbase COIN.O made its debut in Nasdaq in a direct listing. It was last up 0.07% on the day at $63,028. bid prices at 9:46AM (1346 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

91.6330

91.6190

+0.03%

1.836%

+91.7300

+91.4870 Euro/Dollar

EUR=EBS

$1.1971

$1.1980

-0.07%

-2.02%

+$1.1994

+$1.1957 Dollar/Yen

JPY=D3

108.7250

108.9550

-0.15%

+5.33%

+108.9550 +108.7300 Euro/Yen

EURJPY=

130.15

130.47

-0.25%

+2.54%

+130.5500 +130.0700 Dollar/Swiss

CHF=EBS

0.9223

0.9229

-0.04%

+4.27%

+0.9245

+0.9215 Sterling/Dollar GBP=D3

$1.3779

$1.3776

+0.02%

+0.85%

+$1.3808

+$1.3762 Dollar/Canadian CAD=D3

1.2508

1.2521

-0.10%

-1.77%

+1.2528

+1.2477 Aussie/Dollar

AUD=D3

$0.7749

$0.7723

+0.36%

+0.76%

+$0.7761

+$0.7706 Euro/Swiss

EURCHF=

1.1042

1.1053

-0.10%

+2.16%

+1.1063

+1.1041 Euro/Sterling

EURGBP=

0.8686

0.8692

-0.07%

-2.81%

+0.8698

+0.8671 NZ

NZD=D3

$0.7164

$0.7140

+0.35%

-0.22%

+$0.7180

+$0.7138 Dollar/Dollar

Dollar/Norway

NOK=D3

8.3765

8.3950

-0.21%

-2.44%

+8.4050

+8.3580 Euro/Norway

EURNOK=

10.0280

10.0479

-0.20%

-4.19%

+10.0660

+10.0190 Dollar/Sweden

SEK=

8.4508

8.4648

-0.20%

+3.10%

+8.4770

+8.4419 Euro/Sweden

EURSEK=

10.1170

10.1372

-0.20%

+0.40%

+10.1485

+10.1138

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